I seen some companies paying 88% to the owner operators

Do they pay for liability and cargo insurance as well? You have your own collision insurance?

How does it work with brokered loads where it’s a flat rate like most are? In regards to 100% FSC?

 

Yeah they pay all the liability and cargo insurance. I cover my own collision. That's how it normally works at legit companies but a lot of these "90 percenters" charge back the full amount of liability and cargo. And most of them are newer companies paying $20,000 a year for that ####! If a leased owner operator at a company like that parks their truck for more than a weekend they are having those insurance backcharges pile up week after week. I can park my truck for 6 months and not a word will be said and zero backcharges. The company I'm leased to is well estsblished and only pays that on the miles driven.

The way the fuel surcharge works on a brokered load. I dont know what the office uses to calculate the miles but it's pretty close. Let's say for example I book a load from CHR paying $2,000 on 653 loaded miles. If the fuel surcharge this week is 34 cents you will multiply 653 × .34 = $222.02

So $222.02 is my fuel money that I get paid 100% of out of that load. If I am getting 77% then the math is $2,000 - $222.02 = $1,777.98

So the 77% is taken out of that number and the fuel money is added back in. $1,777.98 × .77 = $1,369.04 so add the fuel back into that.

$1,369.04 + 222.02 = $1,591.06

So thats what it actually pays with the fuel surcharge added in at 77% it's $1,591.06 which is actually closer to 79.5%

 

You’re underpaid!

lol!

 

True! I haven't yet been able to find a 90% company that lets me pull all these hazmat and tanker loads with their dryvans.

 

Aside from the $$: Is the company you're leased on up your rear end with a flashlight every second of the day? Can you find your own loads and not have to share part of the revenue with one of their brokers? Can you turn someone in to a customer? Are you truly free to run as you please or do you feel more like a glorified company driver who pays for the truck? Are the people in the office easy to work with? Can you go home and sit there 3 months if you want? How long before you get paid? Hours, days, a week?

So many preferences when it comes to leasing on.

Sophia

 

88% of WHAT ??

 

Please run the numbers of being leased on versus own authority. You will find that it can be cheaper running under your own numbers.

Suppose you are running 1800 miles for a total 2.55 for all miles.

Higher insurance might make the difference in the beginning. However, deduct the 22% and that take home pay changes. In addition, time driven under your own authority basically accumulates towards lower insurance rates. When you lease on to someone and decide it's time to run on your own numbers, you will be paying new entrant insurance rates, opposed to something cheaper as you progress with your own numbers.

Suppose with all expenses said and done, which includes fuel and 22.72% in taxes (Fed, State, Local & SS/Med) and insurance at about 16,500/yr for truck and trailer. Under your own authority your CPM would be about .96 cents per mile.

Lease on using these numbers is approximately .80 cents per mile due to the lower insurance rate.

Deduct the 22% from the line haul and that is .561 cents per mile. Add that to your CPM (cost per mile) and you wind up with 1.361 per mile leased on compared to .96 cents per mile under your own authority.

Even at 12% of the line haul deducted (88%) you're looking at .306 cents per mile leaving you at a cost of 1.106 per mile all said and done.

2.55 - .96 cents per mile = 1.59 net per mile own Authority

2.55 - 1.361 = 1.189 net per mile leased on to a company

Please note, this is without a truck or trailer payment. Your numbers will differ.

You can also get the same tire and fuel discounts offered by the companies you would lease on to. They're out there.

 

Lot of numbers for a simple equation. Using your numbers
1800 x 2.55 = 238680
238680 x .88 = 222180
222180 - 16500 = 210038
12142/year 1011/month
That isn't a whole lot of extra money to cover everything you have to do on your own.

 

And with all the time spent doing that stuff, you can pay someone else to do it and use the time saved to run a couple extra loads instead.

 

Using his numbers you'll need to run 52 weeks a year to make that extra amount. Every time you take off cuts that amount down.
I will say i don't know anyone who runs the numbers he used, most are far above that rpm.